power purchase agreements

The Lone Star State accounted for almost half of the activity witnessed in the world’s biggest corporate clean energy marketplace but analysts are excited about the prospect of Beijing mandating companies to purchase minimum levels of green electricity.

In July 2016 Nigeria signed power purchase agreements with 14 utility scale PV projects with a total generation capacity of 1,075 MW. None of the projects has reached financial close and pv magazine has learned the government wants to reduce the agreed tariffs.

The head of Mercom Capital says solar has a long way to go before it can stand without policy support. Effective grid parity will only be achieved when the cost of PV electricity factors in the expense of grid upgrades and the storage systems its intermittent nature requires, says Raj Prabhu.

The energy transition is accelerating, Ernst & Young global energy leader Benoit Laclau has warned grid operators, thanks to the confluence of digitization, decentralization and decarbonization. Traditional utilities must get with the program or be swept aside.

The Solar Energy Corporation of India has invited bids to set up 1.2 GW of grid-connected solar under the fifth phase of its national interstate transmission system program. The projects – to be established on a build, own, operate basis – will be awarded through e-bidding and a reverse auction with a tariff ceiling of Rs2.65/kWh. Bidding closes on July 31.

The €5.4 billion program is expected to spur new growth in large scale PV while also providing incentives for rooftop systems. Originally scheduled for January, the country’s first technology neutral clean energy auctions – which will provide additional incentives EV charging-linked projects – may be held in the months ahead.

A representative of South Africa’s energy regulator said deals signed between 2011 and 2013 must be subject to lower tariffs to ease the financial crisis at national utility Eskom. The suggestion failed to convince delegates at an Africa Energy Forum panel discussion in Lisbon, however.

The country boasting the highest solar irradiance in Europe has now clearly resumed its race to become a superpower in renewable energy. Pushed by its large-scale segment, the Spanish PV market is expected to see strong growth for the entire next decade. Several factors are contributing to short-term success, including lower module costs and a hike in prices in the local spot electricity market. A series of challenges, however, may provide lower than expected growth, such as grid capacity and rules for access. Although the current Spanish government is seeking to improve the regulatory framework, caution must be advised on the policy side.